Universal Life Insurance is another form of permanent life insurance. It’s similar to Whole Life Insurance in that it, too, is comprised of both an investment portion and an insurance portion. Unlike Whole Life, Universal Life Insurance offers a tremendous amount of flexibility:

• Pay your premiums at any time…and in any amount (within specific limits)
• Decrease/increase coverage without surrendering the policy
• Make voluntary contributions to the policy within IRS established limits
• Withdraw accumulated money from your cash value account
• And much more.

You can reduce or halt your premium payments by using your cash value to cover insurance costs…provided there’s enough cash value accumulated to do so. The professionals at Cave & Cheney Insurance are always happy to discuss your options and policy status. You still have the option of borrowing against your cash value. Of course, you’ll want to make sure you keep your cash value at level that will keep your insurance coverage in force. After all, the number one reason for carrying life insurance is to provide financial security in the event of untimely death. Universal Life Insurance policies earn interest based on current market performance.

If the market is strong, your potential for savings fund growth is greater. Conversely, in a financial downturn, your policy returns may be less than originally estimated, thus increasing your premiums in order to increase your cash value account and cover the cost of insurance as you age. Insurance companies disclose the entire cost of insurance of Universal Life Insurance, making it simpler to understand exactly how your premium payments are distributed (insurance cost vs. savings fund). Universal Life Insurance affords all the benefits associated with permanent life insurance plans, such as providing vital financial security when your survivors need it most, as well as tax-deferred savings.

The flexibility of making voluntary contributions to your policy, withdrawing from your cash value fund, altering your premium payments and increasing or decreasing the face value of the policy to meet evolving needs makes Universal Life Insurance one of the most popular long-term life insurance solutions in today’s market.